I Bonds - now or later in the year?
I Bonds - now or later in the year?
I'm planning to purchase another $10K worth of IBonds this year. Any thoughts on whether the anticipated Fed rate increase will affect the IBonds and whether it would be advisable to wait a few months?
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Re: IBonds - now or later in the year?
It would be a miracle if the Treasury raised the fixed rate to a positive number above zero. The variable rate is going to come down, likely to be zero come May.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Re: IBonds - now or later in the year?
I bought my 2015 allocation in January, not seeing any point in trying to outguess the Treasury. The sooner you buy, the sooner you get past the twelve-month waiting period before you can access the money again.
To put it another way, to me the main benefits of I bonds are safety and liquidity. A few basis points one way or another don't seem that important.
To put it another way, to me the main benefits of I bonds are safety and liquidity. A few basis points one way or another don't seem that important.
Re: IBonds - now or later in the year?
I have my 10K for this year in a no penalty CD and figured that with the expected 0 variable rate coming in May, I might as well hold out until then in hopes of a .1 or even .2 percent fixed. I mean won't they struggle to sell iBonds offering nothing? Anyway, keeping the 10K liquid for a few more months while more money becomes liquid is something of a flip-side argument to that above (getting the new iBond liquid sooner). I doubt it will matter in the long run either way!
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Re: IBonds - now or later in the year?
The Treasury isn't struggling to sell debt if that's what you mean. In fact, buyers are banging on the doors from Europe, begging them to "Please take my money" anything yielding a positive return is better than the negative rates being offered in Western Europe right now.z3r0c00l wrote:I have my 10K for this year in a no penalty CD and figured that with the expected 0 variable rate coming in May, I might as well hold out until then in hopes of a .1 or even .2 percent fixed. I mean won't they struggle to sell iBonds offering nothing? Anyway, keeping the 10K liquid for a few more months while more money becomes liquid is something of a flip-side argument to that above (getting the new iBond liquid sooner). I doubt it will matter in the long run either way!
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Re: IBonds - now or later in the year?
My suggestion is to purchase on a regular schedule and refrain from guessing on the "best time."
Re: IBonds - now or later in the year?
+1telemark wrote:I bought my 2015 allocation in January, not seeing any point in trying to outguess the Treasury. The sooner you buy, the sooner you get past the twelve-month waiting period before you can access the money again.
To put it another way, to me the main benefits of I bonds are safety and liquidity. A few basis points one way or another don't seem that important.
I buy the maximum every January.
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Re: IBonds - now or later in the year?
If new I Bonds were paying 3% + inflation, as they did a decade or more ago, I would agree with those who advocate just buying each year's quota early in the year without fussing over a possible change of a few tenths of a percent. But the fixed rate portion is zero now, so I see no harm in waiting to see if it goes up on May 1. I also agree with others here who believe it likely that the new fixed rate announced May 1 will not be higher than zero, in which case I will then see no harm in waiting to see if it goes up on November 1.
Since I Bonds pay interest for up to 30 years, I'm assuming that most buyers of I Bonds are interested in long-term inflation protection, rather than just using these bonds as substitutes for a short-term cash emergency fund. If so, I think that would argue for trying (to the extent possible) to get each year's highest fixed rate, and we already know that the fixed rate can't possibly go lower than it is now, so why rush?
Since I Bonds pay interest for up to 30 years, I'm assuming that most buyers of I Bonds are interested in long-term inflation protection, rather than just using these bonds as substitutes for a short-term cash emergency fund. If so, I think that would argue for trying (to the extent possible) to get each year's highest fixed rate, and we already know that the fixed rate can't possibly go lower than it is now, so why rush?
Re: IBonds - now or later in the year?
The past few months have seen deflation rather than inflation, mainly due to the fall in oil prices. The inflation portion of the rate could be 0 as well. Thankfully they can never be negative.
Re: IBonds - now or later in the year?
Agree. Barring a surprise reset in May, I plan to by my allocation in November.beardsworth wrote:If new I Bonds were paying 3% + inflation, as they did a decade or more ago, I would agree with those who advocate just buying each year's quota early in the year without fussing over a possible change of a few tenths of a percent. But the fixed rate portion is zero now, so I see no harm in waiting to see if it goes up on May 1. I also agree with others here who believe it likely that the new fixed rate announced May 1 will not be higher than zero, in which case I will then see no harm in waiting to see if it goes up on November 1.
Since I Bonds pay interest for up to 30 years, I'm assuming that most buyers of I Bonds are interested in long-term inflation protection, rather than just using these bonds as substitutes for a short-term cash emergency fund. If so, I think that would argue for trying (to the extent possible) to get each year's highest fixed rate, and we already know that the fixed rate can't possibly go lower than it is now, so why rush?
Re: IBonds - now or later in the year?
Thanks all, I buy IBonds for my portfolio as part of the fixed portion of the AA and I plan to keep them for at least 5 years. I don't use them for my emergency fund. If I wait till November, I would put the $10K into a savings account at 1% in the meantime.
ETA: an alternative to iBonds would be an Ally 2 year "raise your rate" CD currently at 1.29%. I don't have any CDs currently in the fixed income bucket.
ETA: an alternative to iBonds would be an Ally 2 year "raise your rate" CD currently at 1.29%. I don't have any CDs currently in the fixed income bucket.
Re: IBonds - now or later in the year?
The inflation rate can be negative. However, the composite rate which combines the fixed and inflation rate is limited to a minimum of 0%. The formula for computing the composite rate is:sawhorse in [url=https://www.bogleheads.org/forum/viewtopic.php?p=2425697#p2425697]this post[/url] wrote:The inflation portion of the rate could be 0 as well. Thankfully they can never be negative.
Code: Select all
composite rate = fixed rate + (2 X inflation rate) + (fixed rate X inflation rate)
Code: Select all
Annual Fixed Rate 0.00% 1.00% 2.00% 3.00%
Semi-annual Inflation Rate (1.00%) (1.00%) (1.00%) (1.00%)
Result of formula (2.00%) (1.01%) (0.02%) 0.97%
Annual Composite Rate 0.00% 0.00% 0.00% 0.97%
Wait for I-bond?
[Thread merged into here, see below. --admin LadyGeek]
I bought my first I-bond this time last year. Would like to buy another $10k this year. Is there a strategy I should be aware of before I buy? E.g., should I wait until May or November for new rates?
I bought my first I-bond this time last year. Would like to buy another $10k this year. Is there a strategy I should be aware of before I buy? E.g., should I wait until May or November for new rates?
Re: Wait for I-bond?
I'm waiting for the new rates because it can't be any less than 0. At the same time, even if it is higher, it won't be meaningfully higher. The last few months have seen seen big drops in oil, so I wouldn't be surprised if the inflation component is actually negative even though the bond itself can never be negative.
Re: Wait for I-bond?
Given where it is now, I'd wait until late October and just before the November 1st change and make an educated guess whether it'll go up or down from what happens in May. IMO. 

"Nobody knows nothing"! Raymond
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Re: Wait for I-bond?
We are in a relatively unique situation with I Bonds.
Only once previously since Sep 1998 has there been a deflationary I Bond Inflation Rate. The Inflation Rate was -2.78%, 05/01/2009 - 10/31/2009.
The May I-Bond Inflation Rate will be based on the Sep-Mar period. The current Sep-Feb rate is -1.39%, driven mostly by the large recent decline in oil prices. It is almost certain that we will have the second deflationary I Bond Inflation Rate announced in about a month.
Only once previously since Sep 1998 has there been a deflationary I Bond Inflation Rate. The Inflation Rate was -2.78%, 05/01/2009 - 10/31/2009.
The May I-Bond Inflation Rate will be based on the Sep-Mar period. The current Sep-Feb rate is -1.39%, driven mostly by the large recent decline in oil prices. It is almost certain that we will have the second deflationary I Bond Inflation Rate announced in about a month.
Re: Wait for I-bond?
Spirit Rider beat me to it. I haven't decided if I'll buy any this year, but because of that I'll likely wait until the end of the year to decide. My money can make money elsewhere in the mean time.
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Re: Wait for I-bond?
I would buy now, if only because I don't expect the fixed rate to be positive, if it is it will be maybe 0.10 with a variable rate of zero. If you buy now, the fixed rate is zero, the variable rate is 1.48% or 0.74% annually. You can then choose whether you want to cash out in a year or keep it as is, in any event, the I bonds are not quite the steal they were ten years ago when fixed rates were much higher.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Re: Wait for I-bond?
It is pretty reasonable to think that the composite rate for bonds issued now through October will be 0 for six months. So if one buys now, over the next 12 months the return would be 0.74%? Depending on the holding period and tax bracket, I could see the I bonds as being more valuable sooner. It's that whole power of zero thing though. I'd rather make more than 0 and possibly buy later in the year after the 6 months of 0 I'm reasonably sure are coming. The overall interest whichever route one takes is still small and really makes no difference.
Re: Wait for I-bond?
I thought the variable rate changes every 6 months depending on inflation, and everyone gets the current variable rate regardless of when they bought it?Grt2bOutdoors wrote:I would buy now, if only because I don't expect the fixed rate to be positive, if it is it will be maybe 0.10 with a variable rate of zero. If you buy now, the fixed rate is zero, the variable rate is 1.48% or 0.74% annually. You can then choose whether you want to cash out in a year or keep it as is, in any event, the I bonds are not quite the steal they were ten years ago when fixed rates were much higher.
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Re: Wait for I-bond?
No - if you purchase the I bond during the November to April time period, you earn for the next 6 months the rate announced. Someone who purchases an I bond with a March or April 2015 issue date will earn an annualized rate of 1.48% or 0.74% over the next 6 months. If you buy in March, you earn that rate through September, then you earn the rate that was announced in May for the next 6 months (October through March), then the cycle begins anew. Someone who bought in November 2014 will earn the newly announced variable rate come May 1st - we project this rate to be "zero percent", therefore the I bond which currently has a zero fixed rate will earn zero percent for the next 6 months. You don't know with certainty if a fixed rate will be offered in the May announcement or November announcement, it could be zero. So, if you want certainty of earning some positive rate, I would purchase before the May announcement. I can't see the fixed rate being offered at a 0.5% or higher amount, though my crystal ball is cloudy right now.sawhorse wrote:I thought the variable rate changes every 6 months depending on inflation, and everyone gets the current variable rate regardless of when they bought it?Grt2bOutdoors wrote:I would buy now, if only because I don't expect the fixed rate to be positive, if it is it will be maybe 0.10 with a variable rate of zero. If you buy now, the fixed rate is zero, the variable rate is 1.48% or 0.74% annually. You can then choose whether you want to cash out in a year or keep it as is, in any event, the I bonds are not quite the steal they were ten years ago when fixed rates were much higher.
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Re: Wait for I-bond?
Thanks for the explanation. So the rate is for six months regardless of whether the announced variable rate changes during those 6 months? If you buy in April, are you always 5 months behind in the rate changes, or is it only the first six months?
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Re: Wait for I-bond?
If you buy in April you will be 6 months behind the rate changes, it's always 6 months. April, May, June, July, August, September. Then you earn the new variable rate in October that was previously announced in May.sawhorse wrote:Thanks for the explanation. So the rate is for six months regardless of whether the announced variable rate changes during those 6 months? If you buy in April, are you always 5 months behind in the rate changes, or is it only the first six months?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Re: I Bonds - now or later in the year?
FYI - I merged wassabi's thread into here. I also fixed the spelling in the title "IBonds" to "I Bonds".
The wiki has some background info: I savings bonds
We seem to have these questions arise every 6 months as each May 1 and November approach.
If anyone finds any more "should I buy I Bonds now or wait" threads, please report them so I can move them into here.
This thread is now in the Investing - Theory, News & General forum (general question).
The wiki has some background info: I savings bonds
We seem to have these questions arise every 6 months as each May 1 and November approach.
If anyone finds any more "should I buy I Bonds now or wait" threads, please report them so I can move them into here.
This thread is now in the Investing - Theory, News & General forum (general question).
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Re: Wait for I-bond?
Maybe I'm having reading comprehension issues today. Can the fixed rate ever be below 0%? That is, do I have to worry about May's I-Bonds being worse than today's (other than the inflation rate adjustment)?sawhorse wrote:I'm waiting for the new rates because it can't be any less than 0. At the same time, even if it is higher, it won't be meaningfully higher. The last few months have seen seen big drops in oil, so I wouldn't be surprised if the inflation component is actually negative even though the bond itself can never be negative.
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Re: Wait for I-bond?
The fixed rate can never be below 0. (No one would buy them!) The inflation rate can be negative, but if the total fixed+inflation rate is negative, the Treasury bumps the total rate up to 0, so it will never be worse than stuffing it under your mattress.Clever_Username wrote: Maybe I'm having reading comprehension issues today. Can the fixed rate ever be below 0%? That is, do I have to worry about May's I-Bonds being worse than today's (other than the inflation rate adjustment)?
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Re: I Bonds - now or later in the year?
I buy on January 1st to minimize the 5-year maturity date.
16% TSM | 16% TISM | 7% LV | 7% SV/SC | 7% ISV/ISC | 7% EM | 20% TIPS | 20% STIG | Bonds 9.1 years duration
Re: I Bonds - now or later in the year?
I've changed my mind and have decided to get them now. The penalty for withdrawing before 5 years is 3 months of interest. If the composite rate is 0 as some are predicting, then you don't lose anything because 3 months of interest equals 0.
So I'll get them now, get 1.48% for 6 months, and redeem them as soon as they are a year old with no actual penalty. By then hopefully the rate for new bonds will be higher.
People who bought when they first came out in 1998 got an incredible deal. Those bonds have actually outperformed the S&P 500 by roughly 10%.
So I'll get them now, get 1.48% for 6 months, and redeem them as soon as they are a year old with no actual penalty. By then hopefully the rate for new bonds will be higher.
People who bought when they first came out in 1998 got an incredible deal. Those bonds have actually outperformed the S&P 500 by roughly 10%.
Re: I Bonds - now or later in the year?
A couple years ago, I purchases I Bonds in January to be done and over with it. Then, unexpectedly, the rate shoot up to the whooping 0.2%. I still can't forgive myself for the lack of patience. Since then, I resolved to wait until 1 November, if the fixed rate earlier in the year is 0.0%.
Victoria
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Re: I Bonds - now or later in the year?
That's a steep price to pay for losing out on about $20 of interest per yearVictoriaF wrote:Then, unexpectedly, the rate shoot up to the whooping 0.2%. I still can't forgive myself for the lack of patience.

Re: I Bonds - now or later in the year?
When I lose tens of thousands of dollars in a market decline, that's OK. That's what risk and uncertainty are all about. But with the I Bonds in 2013 there was no uncertainty: When the rate was 0% early in the year it could either remain the same or go up. There was no objective reason locking in 0%.zaboomafoozarg wrote:That's a steep price to pay for losing out on about $20 of interest per yearVictoriaF wrote:Then, unexpectedly, the rate shoot up to the whooping 0.2%. I still can't forgive myself for the lack of patience.
And then there is loss aversion. Losing $20 can only be compensated by finding $40 on the road. I have been walking roads since 2013 and still no $40 in sight.
Victoria
WINNER of the 2015 Boglehead Contest. |
Every joke has a bit of a joke. ... The rest is the truth. (Marat F)
Re: I Bonds - now or later in the year?
So why would you get them if you plan on redeaming after 12 months? It seems like the only advantage over taxable is no state tax. Since online savings accounts are at ~1%, it seems like they're both going to give a higher return and are more flexible.sawhorse wrote:I've changed my mind and have decided to get them now. The penalty for withdrawing before 5 years is 3 months of interest. If the composite rate is 0 as some are predicting, then you don't lose anything because 3 months of interest equals 0.
So I'll get them now, get 1.48% for 6 months, and redeem them as soon as they are a year old with no actual penalty. By then hopefully the rate for new bonds will be higher.
People who bought when they first came out in 1998 got an incredible deal. Those bonds have actually outperformed the S&P 500 by roughly 10%.
Re: IBonds - now or later in the year?
I have a short term bucket comprised of I Bonds, CDs and short term bond funds. I haven't bought any CDs in over a year due to the low rates, but am considering the Ally 2 year CD.ZiziPB wrote:Thanks all, I buy IBonds for my portfolio as part of the fixed portion of the AA and I plan to keep them for at least 5 years. I don't use them for my emergency fund. If I wait till November, I would put the $10K into a savings account at 1% in the meantime.
ETA: an alternative to iBonds would be an Ally 2 year "raise your rate" CD currently at 1.29%. I don't have any CDs currently in the fixed income bucket.
I'm also holding off on I Bond purchases. It's looking like November this year...
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Re: IBonds - now or later in the year?
That's my approach.J295 wrote:My suggestion is to purchase on a regular schedule and refrain from guessing on the "best time."
Few decisions in life motivated by greed ever have happy outcomes--Peter Bernstein, The 60/40 Solution
Re: I Bonds - now or later in the year?
This is kind of off topic, however...
Over the past couple years I have moved the bulk of my EF to Ibonds (75%). I have never had to withdrawal anything. If I did need to withdrawal a portion that has been vested past the 12 month mark, are there any hoops to jump through? Or is it a pretty standard put in the request and I have the $ within a week?
Over the past couple years I have moved the bulk of my EF to Ibonds (75%). I have never had to withdrawal anything. If I did need to withdrawal a portion that has been vested past the 12 month mark, are there any hoops to jump through? Or is it a pretty standard put in the request and I have the $ within a week?
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Re: I Bonds - now or later in the year?
You'll have the money in a day or two, no need to wait a week unless you are redeeming a paper bond at the local bank branch.poker27 wrote:This is kind of off topic, however...
Over the past couple years I have moved the bulk of my EF to Ibonds (75%). I have never had to withdrawal anything. If I did need to withdrawal a portion that has been vested past the 12 month mark, are there any hoops to jump through? Or is it a pretty standard put in the request and I have the $ within a week?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Re: IBonds - now or later in the year?
Good point! It's likely the inflation rate to be announced May 1st will be negative. (See this post by Spirit Rider.) If the Treasury were to leave the fixed rate at 0%, there would be no good reason for anyone to buy an I Bond from May through October. A buyer would earn nothing for six months and after that still have an I Bond with only a 0% fixed rate. It would be better to let money sit in an FDIC insured savings account until November when the fixed rate will be at least 0% and the inflation rate will likely be positive. But if on May 1st the Treasury set the fixed rate at some small positive value, there would be a reason to buy even if the composite rate is still 0%. (The reason is that in November the fixed rate could come back down.)z3r0c00l in [url=https://www.bogleheads.org/forum/viewtopic.php?p=2425583#p2425583]this post[/url] wrote:I ... figured that with the expected 0 variable rate coming in May, I might as well hold out until then in hopes of a .1 or even .2 percent fixed. I mean won't they struggle to sell iBonds offering nothing?
Sawhorse is right. For an April I Bond the inflation rate announced May 1st will be applied October 1st and the inflation rate announced November 1st will be applied the following April 1st. This is a lag of five months. (See When does my bond change rates?.)Grt2bOutdoors in [url=https://www.bogleheads.org/forum/viewtopic.php?p=2434705#p2434705]this post[/url] wrote:If you buy in April you will be 6 months behind the rate changes ...sawhorse wrote:...If you buy in April, are you always 5 months behind in the rate changes ... ?
The Treasury has never set a negative fixed rate -- even when TIPS rates were deeply negative. (See What have the rates been in the past?.) I assume this is the Treasury's policy; but I can't find a reference stating so. (I'd appreciate someone providing a reference.) I can only find a statement that the composite rate won't be less than 0%. (See Combining the two rates.) And just as investors bought TIPS with a negative yield, some people would buy I Bonds with a negative fixed rate.sawhorse in [url=https://www.bogleheads.org/forum/viewtopic.php?p=2435341#p2435341]this post[/url] wrote:The fixed rate can never be below 0. (No one would buy them!)Clever_Username wrote:... Can the fixed rate ever be below 0%? ...
Re: I Bonds - now or later in the year?
You're right. I forgot that the I bond interest rate was APR, not the semi-annual rateJDDS wrote:[
So why would you get them if you plan on redeaming after 12 months? It seems like the only advantage over taxable is no state tax. Since online savings accounts are at ~1%, it seems like they're both going to give a higher return and are more flexible.

Re: IBonds - now or later in the year?
Yes, I figure they'll throw something out there to make us chew on. That's more reason to wait until October for me.#Cruncher wrote:Good point! It's likely the inflation rate to be announced May 1st will be negative. (See this post by Spirit Rider.) If the Treasury were to leave the fixed rate at 0%, there would be no good reason for anyone to buy an I Bond from May through October. A buyer would earn nothing for six months and after that still have an I Bond with only a 0% fixed rate. It would be better to let money sit in an FDIC insured savings account until November when the fixed rate will be at least 0% and the inflation rate will likely be positive. But if on May 1st the Treasury set the fixed rate at some small positive value, there would be a reason to buy even if the composite rate is still 0%. (The reason is that in November the fixed rate could come back down.)z3r0c00l in [url=https://www.bogleheads.org/forum/viewtopic.php?p=2425583#p2425583]this post[/url] wrote:I ... figured that with the expected 0 variable rate coming in May, I might as well hold out until then in hopes of a .1 or even .2 percent fixed. I mean won't they struggle to sell iBonds offering nothing?
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Re: IBonds - now or later in the year?
If you buy in April, you earn the rate announced the previous November 1st for a period of 6 months (April through September). That is a full 6 months, unless one assumes you are purchasing on the very last day of April, then you are receiving the benefit of the whole month even though you are handing over the money at the very end of the month. As you state, the inflation rate announced May 1st will then be applied beginning October 1st for another 6 months until the end of March. Beginning in April, the rate announced in the previous November will then be applied.#Cruncher wrote:Sawhorse is right. For an April I Bond the inflation rate announced May 1st will be applied October 1st and the inflation rate announced November 1st will be applied the following April 1st. This is a lag of five months. (See When does my bond change rates?.)Grt2bOutdoors in [url=https://www.bogleheads.org/forum/viewtopic.php?p=2434705#p2434705]this post[/url] wrote:If you buy in April you will be 6 months behind the rate changes ...sawhorse wrote:...If you buy in April, are you always 5 months behind in the rate changes ... ?
[quote="sawhorse in [url=viewtopic.php?p=2435341#p2435341]this post[/url.
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Re: I Bonds - now or later in the year?
Did we ultimately discover what the rates for I-Bonds purchased in May 2015 will be? Or is that information we won't know until May 1?
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Re: I Bonds - now or later in the year?
There is no way to determine it ahead of time. The Treasury Department has to break out their Ouija board.Clever_Username wrote:Did we ultimately discover what the rates for I-Bonds purchased in May 2015 will be? Or is that information we won't know until May 1?
Re: I Bonds - now or later in the year?
0% composite. The Ouija board is still necessary to determine the fixed rate. So at midnight maybe someone can break out their board and see what it says.
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Re: I Bonds - now or later in the year?
Hot off the presses: Fiscal Service Announces New Savings Bonds Rates, Series I to Earn 0.00%, Series EE to Earn 0.30% (May 1, 2015)
Re: I Bonds - now or later in the year?
For those interested, here are the composite rates that will take effect from May 2015 - October 2015 [ 1 ] and run for six months for all outstanding I Bonds, including newly issued ones with a 0.00% fixed rate. [ 2 ] They incorporate the new negative semi-annual inflation rate of -0.80%:
As the table shows, all I Bonds with a fixed rate of 1.60% or less benefit from the 0% floor on the composite rate. Without this floor the composite rate would be negative and the nominal value of the I Bond would fall for six months. Because of the floor, the nominal value remains constant during the six months -- and the real value increases. These composite rates summarize the 515 column near the left side of the I Bond Composite Rates triangle. The source is TreasuryDirect's What have the rates been in the past?.
Code: Select all
Fixed Rate Announced Fixed Composite
# Times First Last Rate Rate
------- ------ ------ ----- ---------
1 May 00 3.60% 1.97% [ 3 ]
3 Sep 98 Nov 00 3.40% 1.77%
2 Nov 98 May 99 3.30% 1.67%
1 May 01 3.00% 1.38%
2 Nov 01 May 02 2.00% 0.38%
1 Nov 02 1.60% 0.00%
2 May 06 Nov 06 1.40% 0.00%
1 May 07 1.30% 0.00%
Code: Select all
2 May 05 Nov 07 1.20% 0.00%
2 May 03 Nov 03 1.10% 0.00%
3 May 04 Nov 05 1.00% 0.00%
1 Nov 08 0.70% 0.00%
1 Nov 09 0.30% 0.00%
2 May 10 Nov 13 0.20% 0.00%
2 May 09 May 14 0.10% 0.00%
9 May 08 May 15 0.00% 0.00%
- New composite rates take effect every six months after the month an I Bond is purchased. For example, these composite rates will take effect May 2015 for an I Bond purchased in May or November; but won't take effect until October 2015 for an I Bond purchased in April or October. See When does my bond change rates?
- Click here for my post from six months ago with the previous composite rates.
- Composite rates are computed as follows:
But if the result of the computation is negative, the composite rate is set to 0.00%.
Code: Select all
composite rate = fixed rate + ( 2 X inflation rate ) + ( fixed rate X inflation rate ) 0.0197 = 0.0360 + ( 2 X -0.0080 ) + ( 0.0360 X -0.0080 )